Kyler Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: LOADING...(Click the icon to view additional information.) Inventory at the start of the year was 750 planters. The desired inventory of planters at the end of each month should be equal to 25 % of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $ 0.20 per pound. Read the requirementsLOADING.... Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.

Number of planters to be sold

January. . . . . .

3,000

February. . . . .

3,200

March. . . . . . . .

3,100

April. . . . . . . . .

4,200

May. . . . . . . . .

4,000

1.	Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.
2.	Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

Start by preparing the direct materials budget through the total quantity needed, then complete the budget.

Kyler Manufacturing
Direct Materials Budget
For the Months of January through March
		January	February	March	Quarter
Units to be produced		3,050	3,175	3,375	9,600
Multiply by:	Quantity of direct materials needed per unit	2	2	2	2
Quantity needed for production		6,100	6,350	6,750	19,200
Plus:	Desired ending inventory of direct materials	1,270	1,350	1,660	1,660
Total quantity needed		7,370	7,700	8,410	20,860

Less:	Beginning inventory of direct materials
Quantity to purchase
Multiply by:	Cost per pound
Total cost of direct material purchases

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